Who Owns FTX EU? Apparently Not Backpack Despite Paying $32M

Key Takeaways

• A day after the official acquisition announcement, FTX estate disputes Backpack claims.
• Backpack claimed to have paid $32.7 million to acquire FTX EU.
• FTX estate claimed the acquisition deal was not finalized and distanced itself from the claims made by Backpack.

On Jan. 7, Backpack, a regulated German crypto exchange founded by former FTX and Alameda alums, announced it had acquired FTX EU .

The exchange claimed the acquisition was approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC).

Backpack claimed that the acquisition would help it expand its derivative trading offerings in the EU region, making it the first crypto exchange to offer regulated perpetual futures.

In addition to expanding its derivatives business, Backpack planned to integrate payment systems within the Single Euro Payments Area (SEPA), which enables free money transfers across EU countries using a single account.

However, before the news could take hold, the FTX estate threw a wrench in the works.

FTX EU Ownership in Limbo Amid Competing Claims

In a Jan. 8 press release , the FTX estate stated that Backpack is not part of the U.S. bankruptcy-approved process aimed at reimbursing FTX creditors.

Just a day after Backpack’s announcement, the FTX estate pushed back, disputing the claim.

In a statement issued Wednesday, the FTX estate clarified that ownership of FTX EU shares has not yet changed hands.

“As of today, 100% of the share capital of FTX EU is held by FTX Europe AG, a subsidiary of FTX,” the estate declared.

“The previously announced transfer of FTX EU shares to certain former insiders of FTX Europe has not yet occurred.”

Despite this, Backpack insists it acquired the shares from FTX EU’s co-founders, Robin Matzke and Patrick Gruhn.

The exchange claims to have made a private deal outside the formal processes recognized by the FTX estate.

Further complicating matters, the FTX estate dismissed assertions that the transaction had been approved by the FTX bankruptcy court and Cyprus Securities and Exchange Commission (CySEC), casting doubt on the legitimacy of Backpack’s acquisition.

As both sides hold their ground, the future of FTX EU remains mired in legal and procedural ambiguity, with significant implications for stakeholders and creditors.

FTX Bankruptcy Saga Grows Murkier

The FTX estate revealed that it was only made aware of the indirect transfer of FTX EU to Backpack after the announcement was made public.

“Neither FTX nor the U.S. Bankruptcy Court was informed of the indirect sale of FTX EU to Backpack before this week,” the estate stated.

The estate also refuted Backpack’s claims of settling FTX EU creditor claims, emphasizing that Backpack has no role in the court-approved process for reimbursing FTX customers and creditors.

“Any amounts owed by FTX EU to its former customers have not and will not be determined by FTX or the U.S. Bankruptcy Court. Such determinations will be made solely by FTX EU after the completion of the sale,” the estate clarified.

In a warning to users, FTX disavowed any statements or claims made by Backpack in its press release or on its website, stressing that these communications were not authorized.

The FTX bankruptcy saga, already marked by complexity and controversy, continues to unfold, leaving many questions unanswered even after key proceedings have been finalized.

Backpack and FTX did not immediately respond to a request for comment.

Backpack’s Alameda and FTX Ties: Cause for Concern?

Backpack was co-founded by Ferrante, a former early employee at Alameda Research, FTX’s sister trading firm, and Can Sun, who served as general counsel for FTX and provided key testimony during the bankruptcy proceedings.

Since its launch in October 2023, Backpack has grown quickly, securing $17 million  in funding from Web 3 venture capital firm Placeholder VC in February 2024.

Among its 40 employees, five have direct ties to FTX.